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KeyXentic's Hardware Keys and Biometrics: Winning Over Top Banks and Military Clients with Unmatched Security
To prevent hackers from stealing data, systems often recommend users to set strong passwords that include more than 8 characters, a mix of uppercase and lowercase letters, numbers, and special symbols. Users are even required to change their passwords every three months.
To users, this is extremely frustrating.
Faced with the need to remember countless passwords, some people choose to use the same password everywhere, while others write them down in visible places. However, these actions actually increase security risks.
Thus, how can we find a solution that balances convenience and security?
With years of experience in cybersecurity, the startup KeyXentic believes that combining biometric authentication with physical hardware keys is the most secure solution. KeyXentic has already collaborated with numerous banks, government agencies, and enterprises domestically, including the Taipei City Government and Chunghwa Telecom. Additionally, the company is actively expanding its international presence, currently working with Malaysia's banks and the German military.
Beyond Zero Trust: KeyXentic's Emphasis on Irrefutability in Cybersecurity
Hong Bo-yueh, CEO of KeyXentic (pictured right), pointed out, "In the past business environment, cybersecurity has often been seen as an optional component," but with the rising tide of digital transformation, the key to successful digitization lies in cultivating cybersecurity awareness, "gradually shifting from 'nice to have' to 'must have.’
In fact, information security involves multiple aspects, including environmental protection for general enterprise servers, chips, and other hardware devices to prevent disruptions due to natural disasters or human errors. It also entails software penetration testing to identify any vulnerabilities in a company's cybersecurity defenses.
"Penetration testing is like a drill, while environmental protection and strengthened encryption are akin to fortification construction. We specialize in the latter." said Hong Bo-yueh.
KeyXentic's 'Key Protection' technology focuses on application security, using keys to lock files and prevent hackers from stealing critical system information. This concept is not only widely applied in enterprises but also seen throughout daily life, such as OTP verification in online banking and the use of personal certificates for tax filing.
Although existing methods of key protection are capable of identity verification, they often leave operational vulnerabilities. Taiwanese startup KeyXentic, established in 2017, has developed a smart key integrating both hardware and software recognition technologies after years of research. Users can authenticate their identity through fingerprint scanning, enhancing biometric security.
The smart key developed by KeyXentic primarily offers two usage modes:
- Identity Verification: The smart key with biometric recognition
When enterprises apply for expense reimbursement, CRM, ERP, and other system permissions for their employees, they mostly rely on individual account passwords for protection. KeyXentic's personalized physical key, however, is regarded as the second line of defense for account security.
Even though these systems were not originally linked with physical keys, the key offered by KeyXentic requires initial fingerprint authentication for activation.
- Cloud Encryption: Cross-National Team Cloud Files
The increasing trend of remote teams during digital transformation has made it easy for employees to upload and download data on cloud platforms, which can lead to cybersecurity vulnerabilities. In response to this scenario, KeyXentic has developed the "XenBox File Encryption Protection System," designed to be used in conjunction with physical keys.
For example, when an employee needs to upload data to the company's internal cloud folder, they simply insert the smart key developed by KeyXentic into their computer and go through the personal identity verification process. This action automatically activates the XenBox system, encrypting the files during the upload process. Only those with the smart key issued by the company can decrypt the files.
Single-Product Solution for All Needs: Why It's Not Feasible
What drove KeyXentic to focus on integrating hardware and software devices, setting a different course from existing cybersecurity firms? Hong Bo-yueh shared, 'It all stems from our previous work experience.’
Hong Bo-yueh previously managed projects involving the digitization of government services and electronic passports, assisting in the development of backend systems for chip-enabled electronic passports on health insurance cards and individual certificates. Drawing on this experience, he ventured into entrepreneurship for the first time in 2010. During market development, he crossed paths with Chen Zheng-min (pictured left), who had made significant achievements in fingerprint recognition technology.
When discussing the integration of chips and biometric identification, both believed it would chart a new course in the cybersecurity industry. In sync with their vision, they brought together like-minded friends who shared their passion, officially founding KeyXentic in 2017.
Despite their extensive experience in the cybersecurity field, their first product launch and initial engagements with enterprises didn't go as smoothly as expected. Chen Zheng-min, Vice President of KeyXentic, shared, 'Initially, we designed products from an engineer's perspective, only to find that it didn't meet market demands.’
At first, KeyXentic designed their product to encompass various use cases, integrating features such as chip scanning and biometric identification into one. While it attracted attention from many engineers at exhibitions, it faced polite rejection from the targeted enterprise clientele.
After conducting market research, KeyXentic discovered that the 'one-product-fits-all' approach was not viable. Product size and mismatched demands emerged as two major factors contributing to its failure.
Chen Zheng-min stated, "We realized we should focus on the functionalities consumers need the most, so we decided to separate the product features and have each product focus on one specific function.
After a painful lesson from the market, KeyXentic regrouped and focused on product development, maximizing their proprietary knowledge base, and successfully penetrated both domestic and international markets.
Proving 'The Grass Isn't Always Greener': KeyXentic's Success in Both Domestic and International Markets
When discussing how KeyXentic entered the domestic financial market, Hong Bo-yueh admitted that changing established mindsets about 'collaborating with foreign companies' was very challenging. However, as the trend towards 'using domestic products' gradually emerged, KeyXentic seized the opportunity to collaborate with system integrators (SIs) and gradually entered the market.
Armed with their smart key integrating hardware and software, KeyXentic has proven to enterprises that foreign products aren't necessarily superior. The team has developed a series of products tailored to different needs, allowing businesses the flexibility to mix and match solutions and find the cooperation model that best suits their requirements.
Since its establishment in 2017, KeyXentic has positioned itself as a product original equipment manufacturer (OEM), expanding its market presence through system integrators (SIs) to reach more enterprises. Collaborations span across industries including finance, state-owned enterprises, and military sectors. Concurrently, KeyXentic has set its sights on the international market, partnering not only with businesses in Taiwan but also in countries such as Malaysia and Germany.
Currently, KeyXentic primarily offers two types of charging models. One is project-based, which includes setup of the key system, licensing, and ongoing system maintenance fees. The other is a subscription-based service, where charges are based on the number of physical keys applied for by the enterprise.
After firmly establishing its presence in the domestic market, KeyXentic was also chosen by Chunghwa Telecom as a key partner. The KeyXentic team looks forward to seizing this hard-earned opportunity to further expand into the international market.
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